Friday, May 15, 2009

Treat Downsizing Seriously

If you are like many managers in the warehouse industry, you might be agonizing over the prospect of the necessity of having to lay off workers that have been with you and your organization for many years. Although the idea is anything but palatable to think about, it is important to approach layoffs methodically and with as much information as possible.
Consider such aspects of terminations such as:

  • Whether or not your company will offer a severance package
  • Review employment agreements
  • Will a counseling service be providedConsider bringing in a third party to help with outside placement services
  • Understand COBRA laws and how they will affect your personnel department
  • Training for your management team on how to speak with exiting employees
  • Provide security for a period of time within the organization and perhaps contacting the police to inform them of a mass layoff in case of a bad reaction or threats by a former employee

The Workers Adjustment and Retraining Notification Act (WARN Act) states that employers that have 100 or more employee are required to provide a sixty-day notice prior to a mass layoff. This law was instituted to allow workers time to adjust to being laid off by seeking jobs, entering training programs, and positions themselves, so he or she find alternative work.

Consult your human resources manager and labor law attorney for the best methods of layoffs. Keep in mind that whatever action you take with your employees, that you must be fair and equitable with all employees in order to avoid charges of discrimination.

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